Property Rights in Historical Political Economy: When do Wedges Wither?

Countries are not equally developed in large part because most countries face sets of property rights that do not foster growth despite the aggregate gains that would result from changing property rights. The difference in rents to society between the extant set of property rights and some seemingly better alternative we define as a “Demsetz” wedge. We explore the forces that sustain the status quo as well the forces that prompt property rights to change.